The Daybreak property is situated near the headwaters of Howson Creek at 1920 metres elevation above sea level, in the Slocan Mining Division. The underground workings are on Reverted Crown grant Lot 1464.

Regionally, the area lies on the western margin of the Kootenay Arc, in allochthonous rocks of the Quesnel Terrane. In the vicinity of the occurrence, the Quesnel Terrane is dominated by very fine grained clastic sedimentary rocks of the Upper Triassic Slocan Group that include locally weakly metamorphosed argillite, quartzite, limestone and some tuffaceous rocks. These sedimentary rocks are intruded by dikes, sills and stocks of varied composition and origin. Permian and/or Triassic Kaslo Group metamorphosed volcanic rocks occur to the north of the Slocan Group rocks. Middle Jurassic Nelson intrusions are immediately south of the Slocan Group and are inferred to be the source of granitic to pegmatitic sills and dikes found in the area. The Nelson intrusions comprise at least six texturally and compositionally distinct phases ranging from diorite to lamprophyre. The most dominant phase is a medium to coarse grained potassium feldspar porphyritic granite (Paper 1989-5).

The occurrence is hosted by predominantly interbedded black argillite, quartzite and limestone of the Slocan Group. The sedimentary rocks have been folded, fractured, faulted and regionally metamorphosed to greenschist facies. The regional northwest trending asymmetric Slocan syncline is thought to be Middle Jurassic and is the first recognizable deformation in the sequence. Several fault structures are evident and host vein mineralization. Later stage normal and thrust faults and shearing have chopped, deformed and remobilized the veins and mineralization. Drag features are also present.

On the Daybreak property the sedimentary rocks strike 145 degrees and dip 50 degrees northeast. The occurrence consists of a calcite and sulphide-filled breccia zone striking 125 degrees and dipping near vertical. The breccia zone is about 1.5 metres wide and has been traced for about 40 metres in a southeast direction. The vein is hosted within limestone and probably follows a transverse structure between two major northeast-trending faults. The vein has been explored with several surface trenches and an adit of unknown length. A representative sample collected from the vein in 1985 assayed 954 grams per tonne silver, 29.5 per cent lead and 16.4 per cent zinc (Assessment Report 14024). Although not specifically mentioned, the sulphide minerals are probably galena and sphalerite.